CENTRAL LIBRARY LECTURE H
PROJECT FUNDING DISCUSSION
CITY OF
NEWPORT BEACH
SS3-1
Project Location next to Central Library
Approved Library Lecture Hall Concept
Floor Plan
91514 SF
Seating for up to 299
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CITY OF
NEWPORT BEACH
COURTYAP
PLAZA EXISTING LIBRARY
LOBBY`'
LIBRARY
ENTRANCE
SS3-3
Approved Library Lecture Hall Concept
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in
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CITY OF
NEWPORT BEACH
4 SS3-4
Approved Library Lecture Hall Concept
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CITY OF
NEWPORT BEACH
5 SS3-5
Approved Library Lecture Hall Concept
Ir
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CITY OF
NEWPORT BEACH SS3-6
Project Background
$70,000 included in 2018-19 CIP to initiate exploratory effort 3/19/2019 - City Council CIP Study Session - Central Library Lecture Hall discussion leads to $500K added to 2019-20 CIP for Concept Plan Development and Cost Estimate
7/9/2019 - City Council forms 5 member "Library Lecture Hall Design Committee" (LLHDC) including former Councilmember Dixon as Council Representative
11/19/2019 - LLHDC recommends, and Council approves project Design Architect Consultant team. Total Overall Project Cost identified as $8,000,000 with proposed 50-50 split for 7,000 sf building w/275 seats. Projected completion was Fall 2022
CITY OF
NEWPORT BEACH
SS3-7
Project Background
February 2020 — Covid 19 Pandemic Begins
9/28/2021 - City Council Study Session - Council Reviews/Tentatively Approves LLHDC recommended Concept Design with a Total Projected Project Cost of $12,777,670, and 50-50 Split of cost up to $13 million 11/30/2021- Council Approves 9,500 sf Concept Plan, with a Total Projected Project Cost of $12,812,000. CIP budget set at $13 million w/ $6.5 M in Contributions from Library Foundation
2/28/2023 - City receives five bids for project. Low bid was $17,135,000 by AMG & Associates, 22% higher than Estimate of $14,000,000 3/28/2023 - Council Rejects Bids and directs staff to rebid around September 2023
CITY OF
NEWPORT BEACH
SS3-8
Current Project Status
Funding MOU in place with Library Foundation - 50/50 Split up to $13 Million ($6.5 M each)
Final Plans Completed & Building Permits Secured (9,814 SF 299 seats) (Engineers Estimate of $18,500,000)
City Cost to Date $758,700 + staff time
Three bids received on October 12t", with Lowest Qualified Bid from AMG & Associates for a base bid of $19,068,000.
Deductive Bid item for Pollution Liability Insurance of $9,000 • Additive Bid item for enhanced Digital Acoustics System of $409,000 ➢ Total all -in Project Cost projected at $23,438,935 Million Ali CITY OF (Cost per SF N $Z_ 01
NEWPORT BEACH
SS3-9
Total Project Cost Summery
TASK DESCRIPTION
ESTIMATE &
BUDGET
TOTAL(11121)
PROJECTED
TOTAL COST
(as of 101231
COMMENTS
CONCEPTUAL DESIGNIPERMITTING RCA
$ 215,635
$
215,635
Design, Inspection, Utility
SOFT COSTS
$ 1,302,035
$
2,173,500
Connections, Construction
Management, MateriallSoil
Testing, Permits
HARD CASTS
$ 11,239,800
$
20,974,800
Building Construction & 10%
Contingency
FIXTURES, FURNISHINGS, & EQUIPMENT (FF&E)
$ 55,000
$
75,000
PROJECT TOTAL
$ 12,812,470
$
23,438,935
AMOUNT OVER MOU & PROJECT BUDGET > $ (10,438,935)
FY23-24 Approved Budget
Foundation Contributions $ 6,500,000
City FFP $ 6,500,000
Total $ 13,000,000
SS3-10
Projected Annual Operational Cost
Annual Janitorial starting at N $30,000
Annual Repair& Maintenance — $315,000/yr (+CPI) over life of building (-1.5% of Construction Cost)
Annual Utilities (usage dependent) — $76,500 (-$.651sf/month for low use) Additional Staffing Needs to be determined
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CITY OF
NEWPORT BEACH
SS3-11
&NB Library Foundation — Funding Contributions
➢ Current MOU requires $6.5 million deposited into escrow prior to Award of Construction Contract for Facility
➢ As of October 25t", the Library Foundation advised staff they have $8,200,000 in hard commitments available now
$7,000,000 to
be
placed in
escrow account
prior to contract award
$1,200,000 to
be
collected
over next three
years.
➢ Foundation identified they have another N$1,000,000 in soft pledges that should be available after contract award bringing total to N$9,200,000 ➢ Foundation also committed to taking on further fundraising campaign to raise remaining contributions up to 50% of total project cost, 4d, �
CITY OF
NEWPORT BEACH
or ^'$11,719,500
SS3-12
Shortfall Funding
If City commits to funding 50% of total project costs, additional $5.2 million is required, for a total contribution of $11.7 million
➢ The City has $29
million in
capital reserves,
for projects outlined in City's
long-term capital
planning
documents
(FFP,
HBMP, CIP)
Over next several years, $20 million from the reserves are for projects such as Balboa Island Drainage System and Balboa Library & Fire Station ➢ Significant projects are in the long-term horizon (ten plus years) including the Newport Pier, Balboa Pier & Balboa Island Seawall projects General Fund operating surpluses, pay off of long-term liabilities will be some of the strategies to provide funding to support the City's long-term capital needs in the future
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CITY OF
NEWPORT BEACH
SS3-13
Temporary Gap Funding
The Library Foundation proposed contribution would be structured with $7 million placed in escrow prior to contract award and $4.7 million funded from donations over next three years
➢ Depending on the timing of the donations and construction, the City would need to temporarily allocate up to $4.7 million for the portion of the project to be repaid by the Foundation over the next three years, in addition to the City's contribution
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CITY OF
NEWPORT BEACH
SS3-14
Next Steps
❑ Decide whether to Accept Bid and Award Construction Contract If proceeding - Determine how to fund gap over current $13 million Agreement with the Library Foundation
❑ If funding share/amounts modifications acceptable, amend current MOU with Library Foundation prior to contract award
Award Construction Contract and start project
Estimated 21 month Construction Timeframe
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CITY OF
NEWPORT BEACH
SS3-15
Questions
Comments
Discussion
Need direction whether Council would like to proceed with this bid and award a construction contract for the Project? And if so, how should we plan to fund it?
SS3-16